Study On China's Financial Supervision Based On Financial Market Efficiency

As the hinge of financial system, financial market efficiency is directly related to the development of financial industry and indeed whole economic, improving the efficiency of financial market have great significance for economic and financial development in our country. Although maintaining security and stability of the financial system has always been the primary objective of the supervision authorities in China, but the philosophy "stability above all else" result in that financial stability in contradiction to financial market, and always result in that over- supervision inhibit the efficiency of financial market or supervision failure. The international experience of financial supervision and financial market efficiency shows that the level of financial market efficiency is positively correlated to the strength of financial stability. In the long term, they have internal consistency. Looking the world economy in post-crisis era, challenges and opportunities exist. Whether Chinese economy could become the leader in the post-crisis era, largely depends on the level of financial market development, and depends on the efficiency of financial market. Therefore, we should establish the supervision objectives of efficiency which on the basis of financial security and stability.On the basis of relevant theories of financial supervision and financial market efficiency, this paper set improvement of financial market efficiency which base on the financial security and stability as the primary objective of financial supervision. In our study, the main methods are: demonstration and criterion analysis combined literature and experience combined, induction and deduction combined. This paper reveals the internal consistency between financial market efficiency and financial security, describing the way financial supervision affecting financial market efficiency positively and negatively, describing the development process of Chinese financial supervision in detail and comparing international. It also takes stock market as the example to analyze Chinese financial market's efficiency empirically, analyzing the reasons of Chinese financial supervision deviating from financial market efficiency. At last, with the reality of Chinese financial supervision and financial market efficiency, I make the concrete measures and suggestions to strengthen Chinese financial supervision and improve the financial market efficiency.